ECB keeps key rate unchanged at 1%

Last Updated: Thursday, August 6, 2009 - 21:12

London: The European Central Bank on Thursday
retained its key rate at one per cent, amid the constituent
countries continuing to grapple with the economic turmoil.

Separately, the Bank of England too retained its
benchmark rate at 0.5 per cent.
The ECB, which sets the rates for the countries which
share the common currency euro, has decided to keep them
unchanged.

The interest rate on the main refinancing operations and
marginal lending facility would remain at one per cent and
1.75 per cent, respectively. The rate on deposit facility
would be at 0.25 per cent, ECB said in a statement.

Majority of the countries in the region are mired in
recession and are witnessing higher unemployment rates.

Meanwhile, the Bank of England decided to maintain the
official bank rate paid on commercial bank reserves at 0.5 per
cent and would also increase the size of asset purchase
programme to 175 billion pounds.

"The (Monetary Policy) Committee also voted to continue
with its programme of asset purchases financed by the issuance
of central bank reserves and to increase its size by 50
billion pounds to 175 billion pounds," the apex bank said in
another statement.

Bureau Report



First Published: Thursday, August 6, 2009 - 21:12
TAGS:

comments powered by Disqus